Boreo divests its operations in Russia
Boreo has today sold its 90% shareholding in the electronic component distribution business in Russia (“YE Russia”) to companies controlled by Mr. Yrjö Pönni, current General Director and 10% shareholder of YE Russia (“Buyer”).
“As a consequence of the Ukrainian crisis, in March we started to investigate options for the business operations in Russia. The now executed transaction provides us with a solution to completely exit Russia and for the business and personnel of YE Russia a more sustainable long-term solution” says Kari Nerg, CEO of Boreo.
The transaction has been executed on August 9, 2022. The total value of the transaction is not disclosed. The Buyer pays part of the purchase price with 8,000 shares in Boreo. A separate stock exchange release on the purchase of shares will be disclosed on August 9, 2022.
In its H1 2022 interim report released tomorrow on August 10, Boreo reports YE Russia in discontinued operations in accordance with the IFRS5 standard. As a result of the completed transaction, Boreo will book in its Q2 2022 result an impairment of approximately EUR 5.9 million. The impact of the impairment of Boreo’s equity is approximately EUR 8.7 million. The impairment does not have an impact on operational EBIT of Boreo’s continued operations nor the outlook of other Boreo companies.
Vantaa, 9 August 2022
NASDAQ Helsinki Ltd
For more information:
CEO Kari Nerg
+358 44 341 8514
CFO Aku Rumpunen
+358 40 5563546
Boreo in brief
Boreo is a company listed on Nasdaq Helsinki that creates value by owning, acquiring and developing small and medium sized companies in Northern Europe. Boreo’s business operations are organized into three business areas: Electronics, Technical Trade and Heavy Machines.
Boreo’s main objective is to create shareholder value in the long-term. It aims to achieve this with an acquisition-driven strategy, creating optimal conditions for its businesses to increase sales and improve profitability and by being a best-in-class home for its companies and personnel.
Net sales of the Group’s continued operations in 2021 was 122 m€ and it employs over 300 people in seven countries. Boreo’s headquarter is located in Vantaa.